Who Can Benefit from a Non-QM Loan?
Self-employed borrowers are often paid sporadically and have more than one stream of income, which makes it difficult for them to obtain a qualified mortgage. These individuals typically turn to loans based on their bank statements as opposed to their tax returns.
Prime borrowers are often keen to take advantage of Non-QM loans since they usually have great credit but are looking to take on a loan that may have interest-only payments or who have a higher than normal debt-to-income ratio.
Near or non-prime borrowers who don’t have enough credit, a prior bankruptcy, or distressed property sale within the last two years are often good candidates for Non-QM loans.
Borrowers with sizable assets and prime credit may decide on a non-QM loan in order to maintain a positive cash flow rather than just buying the home in cash.
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